CG Power seeks recovery of Rs 3,400 crore from several firms
Cash-strapped CG Power has asked several companies including its firms affiliated to its promoter and former Chairman Gautam Thapar to return a total of over Rs 3,400 crore.
Cash-strapped CG Power has asked several companies including its firms affiliated to its promoter and former Chairman Gautam Thapar to return a total of over Rs 3,400 crore. In its earnings statement, released post its board meeting earlier in the day, the company said that it has to recover Rs 3,018.62 crore from its "promoter affiliated" companies and "connected parties", implying to the companies related to Thapar.
In its earnings statement, the company also said that the second phase of its investigation has been initiated by the board and the report of the ongoing investigation would be submitted to the board in due course. The investigation is expected to be completed by fourth quarter of the financial year 2019-20.
"The company has issued recovery notices to 7 (seven) entities demanding repayment of a sum of Rs 1,314.78 crore owed by them to the Company. Besides, the company`s legal counsel on instruction of the Company, have issued 23 recovery notices on behalf of the company`s subsidiaries -- CG Power Solutions Ltd, CG Middle East FZE and CG International Holdings Singapore Pte Ltd for recovery of an aggregate sum of Rs 2,095.64 crore owed by various entities," CG Power said.
Further, three notices sent by the company, with a recovery amount of Rs 452.12 crore and nine notices sent on behalf of the subsidiaries with a total recovery amount of Rs 429.85 crore have been returned undelivered, it said, adding that recovery notices for claims of Rs 74.63 crore owed to the company and Rs 395.18 crore owed to certain subsidiaries could not be sent for want of requisite details including communication details.
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The legal counsel appointed by the Company are in the process of evaluating appropriate legal actions to be taken in respect undelivered notices and unsent notices.
CG Power also said that due to the reduction in the shareholding of the promoters in the company to a negligible percentage, subsequent detection of unauthorised transactions undertaken from the group, leading to fraudulent transfers to the promoter company, Avantha Holdings Ltd and its related entities and consequent removal of Thapar as the company`s Chairman, the group has sought for exemption from the conditions under SEBI rules for reclassification of promoters, Avantha Holdings Ltd and others from promoter shareholder to public shareholders.
The application is pending consideration of Sebi, the company said.